Renewing your mortgage in Ontario is a great opportunity to review your financial picture and make sure you're getting the best deal. Here are the top tips to help you navigate the process.
Start Early, Avoid Late Fees
Deadline Approach
Begin reviewing your mortgage options 4-6 months before your renewal date.
Early Renewal Benefit
Many lenders allow early renewal without penalties during this period, giving you time to negotiate or switch lenders.
Reassess Your Financial Goals
Align with Your Needs
Determine if your current mortgage terms align with your financial situation.
Explore New Options
Consider whether you want to pay off your mortgage faster, lower your monthly payments, or access equity for other purposes.
Shop Around for the Best Rates
Don’t Settle
Don’t accept your current lender’s first offer. Other lenders might offer better rates or terms.
Find the Right Partner
Use a mortgage broker to compare multiple lenders and secure competitive rates.
Negotiate With Your Current Lender
Leverage Competitor Offers
Use offers from other lenders as leverage to negotiate a better rate or terms with your existing lender.
Retain Your Business
Many lenders are willing to match or beat competitors' offers to retain your business.
Weigh Fixed vs. Variable Rates
Fixed Rates
Offer stability and predictable payments, but might not offer the lowest rates.
Variable Rates
Might provide savings if interest rates decrease, but carry a risk of higher payments if rates rise.
Review Additional Terms & Conditions
1
Prepayment Privileges
Flexibility to make extra payments without penalties, helping you pay down your mortgage faster.
2
Breaking the Mortgage
Understand penalties for breaking the mortgage before the term ends.
3
Payment Schedule Flexibility
Choose a payment schedule that suits your cash flow and financial goals.